Seoul: Industry Minister Kim Jung-kwan has made a public appeal to Samsung Electronics Co.'s labor union and management, urging them to finalize a settlement in their ongoing wage negotiations. This appeal comes as both parties engage in final discussions to avert a potential strike planned by Samsung workers.

According to Yonhap News Agency, Minister Kim expressed his concerns during a parliamentary industry committee meeting, highlighting the significant consequences a strike could have on Samsung Electronics and its stakeholders. He emphasized his hope that a last-minute agreement could be reached, while also clarifying that he does not intend to interfere with the current mediation process.

The negotiations, which are in their final day of government-led mediation, have so far been unsuccessful in bridging the gap between Samsung and its largest labor union. The primary point of contention remains the performance-based bonuses, with the union demanding fixed bonuses amounting to 15 percent of the semiconductor division's operating profit and the removal of payout caps.

The urgency of the situation is underscored by the union's threat to initiate an 18-day general strike starting Thursday. This comes in the wake of Samsung's chip division posting a record operating profit of 53.7 trillion won (US$35.8 billion) in the first quarter, driven by strong global demand for chips amid the AI sector's booming growth.

Minister Kim reiterated his concerns about the potential negative impact of a strike and urged both parties to find a resolution before it is too late.